According to Austrian tax authorities and the Independent Finance Board (UFS), sec. 9 para. 6 no. 6 of the Austrian Corporate Income Tax Act precludes the direct transfer of losses incurred in a domestic permanent establishment of a company situated in another member state to a company of the same group established in the national territory within the context of group taxation. Losses – including also the losses of the domestic branch of the foreign company – should only be considered in proportion to the shares of the resident group members in the capital of that foreign enterprise. In a similar case, the ECJ has recently stated that the fundamental freedom of establishment requires the consideration of such losses.